Contractor deposit red flags

Many contractors need a deposit for materials or scheduling, but a deposit can become risky when the terms are vague, rushed, or unusually large.

Possible red flags

  • The deposit is very large compared with the job size.
  • There is no written scope of work.
  • No company address, registration, insurance, or references are provided.
  • The contractor pressures you to pay today.
  • Payment is requested by an unprotected method.
  • There is no schedule, cancellation policy, or receipt.

Questions to ask first

  • What exactly is the deposit paying for?
  • Is it refundable if work does not start?
  • Can I have the full scope, timeline, and warranty in writing?
  • Can you provide references or recent work examples?

Paste the quote or message into PeoplePick DealCheck before paying.